Vermont and New Hampshire are grappling with a critical shortage of workers to fill available jobs, exacerbated by an aging population and insufficient younger workers to meet demand. The national economy is thriving, creating robust demand for labor, yet challenges such as a housing shortage and high student debt remain significant barriers to retaining young people in these states. Local CEOs are feeling the pressure to raise productivity among existing workers due to the lack of migrants, which benefits investors and banks but diverts wealth from ordinary Americans [24fa831a].
Katie Smith Sloan, President and CEO of LeadingAge, recently highlighted the crisis-level staff shortages in nursing homes across the U.S. She emphasized the urgent need for more legal immigration to address these shortages, particularly as new regulations set to take effect in 2026 may worsen the situation, potentially leading to more closures and bed shortages [783403a0]. Experts suggest that the U.S. will need 34 million more workers by the 2030s to meet labor demands [77775953].
In Vermont and New Hampshire, employers are advocating for federal action on immigration to alleviate the labor shortage. The Vermont Futures Project is promoting an increase in the state's population to boost the economy [e5d0653f]. President Biden's open-borders policy has been criticized for negatively impacting businesses in smaller states like Vermont, where the absence of migrants leads to lost revenue for landlords and retailers, although the state has benefited from increased exports [24fa831a].
Minnesota has seen a 3% decline in its workforce due to retirements and technology, necessitating immigration and hiring reform. Companies are adapting by offering higher wages and flexible working conditions [e8b45a2c]. Similarly, Northern Kentucky's leaders are focusing on attracting and retaining talent amid a labor shortage attributed to the pandemic and retirements [c0457546].
Former Mexican President Vicente Fox has warned that the U.S. is heading toward a labor shortage and will need to rely on migrants from Central America, Latin America, and the Caribbean to meet its labor needs. He noted that migration from Mexico has decreased significantly, necessitating a timely resolution to immigration issues [9b4bb474].
A recent opinion piece in The West Australian raised concerns about moves to cut skilled migration and discourage international students, warning of a 'forever skills shortage' in countries with below-replacement fertility rates, including the U.S. [895cd9b4]. In the UK, net migration has brought benefits but has failed to address the downward trend in per capita GDP, with housing supply not keeping pace with demand [a66cb882].
The U.S. economy relies heavily on immigrant labor, with immigrants comprising a significant portion of the workforce. The Congressional Budget Office projects that immigration will contribute an average of 0.2 percentage points to annual GDP growth over the next decade. However, there is a growing political backlash against immigration, with a Gallup poll indicating that the share of Americans wanting decreased immigration levels has risen from 28% in 2020 to 41% in 2023 [3b0400d1].
David Bier from The Cato Institute has pointed out the backlog in green card processing, with some applicants from as far back as before 9/11 still waiting. This backlog adds to the challenges faced by the labor market, particularly in service jobs that are crucial for economic stability [783403a0][77775953]. Ron Hetrick from Lightcast noted that migrant workers are essential in service, construction, and manufacturing jobs, underscoring the need for increased legal immigration [783403a0].
The U.S. is projected to need 7 million additional migrants to support aging programs for baby boomers, with areas of high demand for work visas in production, retail, and healthcare services [23fda94e]. As the nursing shortage continues to grow, with visa wait times extending to approximately 2.5 years, experts suggest that employers must focus on creating supportive work environments to retain staff [9c4f2908].
Eric Hovde has expressed concerns that both the U.S. economy and immigration systems are broken, highlighting the urgent need for reform [d9c0cb3d].